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Go to upgrade under installation expert, add---> and browse to the msi which is the older version of you current package, select the old version package and click ok... you will see the upgrade code of your previous version package the upgrade pane. Make sure that your previous version package's upgrade code matches with you current package's upgrade code.
When you install your new package it will check for the older version package, if it is found it will uninstall and it will install the newer package.